tv Worldwide Exchange CNBC May 4, 2015 4:00am-6:01am EDT
. welcome, everyone to the show. you are watching "worldwide exchange." i'm your host seema mody and here are your headlines. markets shrug off the pmi reading amid hopes of more stimulus from beijing. the london market is closed for a holiday and german slows for the month of april. and a potential megamerger between the swiss firm and monday santo.
britain's prime minister heads for a post election deal. and welcome, everyone, to the show. we've been digesting the recent pmi data across the you're euro zone. we got the latest data on april manufacturing at 52 versus the 51.9, and 52 which is the break down for march. interestingly enough, the numbers out of italy came in pretty strong. italian april manufacturing pmi up to 53.8 to 53.1 for march. a 12-point high attributed to strong export orders. some of the upbeat orders out of spain as well thanks to a rise to exports.
a boon for spanish recovery. german slowed in the month of april to 52.8. it did beat forecasts of 51.9. we've been taking a look at the euro dollar holding flat at 1.11 down about .4 against the u.s. dollar. china's manufacturing pmi has disappointed investors falling at its fastest rate in a year. it's suggested that factory ended at 44.8. so the stimulus bandwagon rolls on that's the market expectation and as you noted, mainland china front running the idea of more stimulus so
potentially the economists are saying we can see 25-basis point cut in interest rates sometime in the second quarter to shore up the economy. so that's what the markets are banking on right now in mainland china. in fact the utilities and the infrastructure subindices did very well today. the banking index didn't do so well. the expectation of more stimulus didn't spillover into the hang seng. because of the valuation gap in the medium term we are seeing a strong rebound in jakarta and also the philippines index. jakarta did under perform last week in terms of earnings disappointments. japan is out of action as is malaysia and thailand so that may be exaggerating some of
these moves to the upside seema. that's where we stand now. joining us from the hague is martin. despite the slow down in chinese economic growth what's the catalyst here is it just a bet on central bank intervention? >> it's mainly excitement about future easing. it also feeds on itself. in china, it's mainly the retail investors that have been buying. they get more excited as the markets rise more but it's also a bit of that. the key to that is expectation of policy easing. >> the size and speed of this rally has prompted many questions as to whether these stocks becoming overvawled. it's estimated more than 70% are commanding prices 50 times
earnings. valuationwise are you concerned when looking at chies stocks? >> we should not forget that last year around this time china together with russia was the cheapest market among emerging markets. valuations are not that attractive any more but you cannot say that the measuring as a whole is getting too expensive. there are some stocks that might get expensive. over all, i think value is not a big concern. it's really the supply of new equities. if the authorities really start to sell more and more companies to the private sector there might be a feeling that there's a lot of supply coming. the market might correct. >> the shanghai composite is 27% below its 2007 peak. do you want to buy the hang seng which is trading at a discount
and? >> yes, probably it's better idea. you have to understand that there's also more mainland chinese money that goes into the hang seng market and it's mainly the chinese that have been excited about their own markets. global investors have not really bought into it. in the last few weeks there have been negative fund flows from foreigners out of china. i'm not convinced you have to play this aggressively between shanghai or the handing send. investors in indonesia are getting ready for a potentially weak growth figures are released tomorrow. let's get out to susan lee with more on this story. hi susan.
>> that's right. the emerging world is in focus here at the asia development bank meeting, the 48th meeting of the governors here. they have the same set of problems. they are looking at slowing growth. they are looking at china slowing down. if you want to talk about problems, indonesia is probably the biggest exhibiters of issues right now, not only do you have slowing growth at a half decade low, you have the stock market that is the worst trading in the year. if you are a finance minister we have a lot of headaches. we spoke to him about some of these problems about what he's going to do to boost growth and boost government covers -- coffors. he eventually gave us some
hints. >> net profit is less but still profit. that's one thing. and second thing, of course we are going to do more economic stimulus at the second quarter. i'm also now thinking -- start thinking about some other policies that might be useful to boost up the conception. >> like what? >> well i cannot share with you today. >> give me an idea of -- >> the idea is how to make people spend more you know some kind thing in terms of tax. there are some other ways. >> i'm trying to think of some of the policies. would you be calling bat? >> no we're not talking about changing the tax rate this time we start thinking about that next year. not this year. >> i'm trying to get an idea of what these incentives might be since you want to boost consumption but you don't want to cut down on tax revenues.
>> yes. >> what kind of domestic policies would dha look like? >> well, kind of relieving some come mod dits from luxury tax that might be helpful for consumption. some goods might have luxury tax but it's not luxury anymore but somehow it keeps doing that for many years and people tend to forget the luxury tax is still there. even for television. this is one of the policies that i'm thinking to be complemented this year. >> and indonesia does matter because they are southeast asia's power house. the largest economy in southeast asia. he's one of the 3,000 attendees here at the annual asian development bank meeting, where
we have central bank members in attendance, finance ministers and originally evan going to make this trip but nepalese finance minister is going to be there. susan, thank you so much and investors are embracing for a poor report from indonesia. you can head to cnbc.com to get more about those numbers. let's talk more to maarten. what are your thoughts? indonesia, of course is expected to see this big growth story, but that really hasn't taken place. >> i think indonesia has been slowing already for several years. it's mainly the declining commodity prices. also concerns about the fact policy normalization has
affected flows to indonesia. policy makers have done a reasonable job in guiding the economy. it's been correcting to be more competitive with more difficult global market. the economy is slowing. 5% is a decent rate. if they can say between 4.5 and 5.5 and, that's fine. earnings started to deteriorate. it is a bit funny, the slowdown was taking place quite a while and we knew already for quite a while that indonesia would not start recovering before the second half of this year. that scenario has not changed. >> another growth story is india. recent data has suggested that perhaps india is in the midst of a slowdown. their manufacturing activity dropped a little in the month of april. what are your thoughts on india
going forward? >> i think india looks actually quite good compared to other markets in the region. they don't have this terms are of trade indonesia has. it's not that sensitive to developments in china but maybe expectations in the market have been a bit too high. that's why the market has under performed recently. recently, there has also been some talk about disappointing rainfall that might affect inflation in the next few months that could lead to central bank cutting rates less than expected. that's not really a new trend in india. it maybe just that the markets got a little excited ahead of future growth. >> a lot of these markets are sitting on a lot of dollar didn't denominated debt. does that make them vulnerable to the expected rate rise in september this year? >> that makes them quite
vulnerable. that's one of the reasons to be cautious. another reason is the chinese slow down that's still continuing. india in this context is not looking worse than other markets. there is indian corporates that have borrowed heavily in u.s. dollars in the last few years. they might get some trouble. i think the whole indian system can probably deal with higher rates in the u.s. >> we'll if you are right. thank you for joining us. let's also get you a check on european markets on this monday. investors had a packed calendar. we had that u.s. jobs report on friday will be in focus. plus the u.k. election results, markets in the u.k. of course closed today for that bank holiday. take a look at on your screens. euro stoxx is down.
european markets that pmi data really in focus. the specific italian manufacturers manufacturers, ftse mib trading down by 51%. the zetra dax in the month of april, the german dax is holding on to a gain of around 40 points. the ibex 45 market trading at 11,374 basically flat. the cac 40 seeing a gain of around 2 points. bond markets gaining and grabbing. we did see a sell-off. over the past week the treasury yield rising 21 basis points. that's the highest increase since march of 6th.
we also see a bund trading higher ten year right now at 1.8%. in the month of april, the euro gaining 4% against the u.s. dollar. a couple of factors driving it higher first, the encouraging data out of the euro zone and the disappointing data out of the u.s. sending the u.s. dollar lower. we're looking at the euro holding to 1.12 against the u.s. dollar. now coming up on the show it's a busy day. buffet warns on equity levels and he's still getting into stocks. carl icahn is warning. avengers assemble another
just three days until the u.k. general election and the polls are still too close to call with no party heading for an out right majority. the financial times is reporting that prime minister david cameron is preparing to renew his coalition partnership with the lib-dems. that's if they come out with the most seats after thursday. wilfred, have you been taking that opportunity to take some dips and get your feet wet? >> of course seema in between each hit, i've swum a great distance so far. i will be again in just a couple of minutes. bright for the location where a candidate is going to be today. the coalition between the torys
and the lib-dems once again, it's who is going to be getting into bed with who. if one of the two of them would have to break one of their red lines, their promises to voters on the issue of europe. of course, david cameron says he will hold a referendum by the end of 2017 on europe. or he may have to get that back or abandon that promise. if he wanted to make a deal with nigel faraj, he wants to hold a referendum immediately and he wants to have control over the wording of it. i caught up with him over the week and i put the question to him whether he would consider allowing that referendum to take place a bit later and whether it was working trying to row negotiate terms with the e.u. ahead of the referendum. >> there is no negotiate on the big issues. there are two issues that the british would like to see
changed. one is the supremacy of law. and they have all said this is not up for negotiation. now that we're on the edge now of a common european asylum policy being implemented, i was there during that debate and means added to the woes of the euro zone the poverty of many parts of eastern europe we potentially have very large numbers of people about to get european passports all of whom would be able to come to this country. already we've got net migration running at 300,000 a year and if we wait until 2017 perhaps another million people will have come. we need to get a grip on it now. >> what do you make of junker? >> lovely moment. we always say good morning and we're always very civil. and he put his arm around me.
he said i'm very surprised to see you here today. i wouldn't have missed it for the world. look, in the election purely personal level nigel. very good luck. if you win, we won't see you again. >> i thought that was rather nice. >> could you do any deals outside of the conservative pocket? >> the one thing i got wrong is i thought the labor party would have moved to a pro referendum position. mill i band appears to be completely in the grip of the arguments we need to the e.u. which i think is total rubbish, there are no circumstances we can work with the milli band. mr. cam reason's record on this is interesting. in 2008 he gave a cast-iron guarantee of a referendum. he changed his mind in 2010. he then spent 2012 say it was
against the national interest. in 2013, he decided to have a rern dux. the problem is he's kicked into the long grass for a couple of years. there's no serious renegotiation, but also he's already said that whatever the outcome of the talks, he's going to expect collective cabinet responsibility. my fear is left on his own, we wouldn't get a referendum. we would get a stitch-up. what we need is to make sure that it is a full free and fair referendum. seema, coalition possibilities grabbing most of the headlines over the weekend. the other thing that grabbed a lot of attention was his strange decision to decide to unveil an 8-foot statute with his six election pledges on it. it's been ridiculed on social media as a very odd decision and i think it really highlights how much lack of conviction the parties leaders have that voters are trusting and believing in
them. why are voters full of distrust at the moment they are all making very strong promises that can't add up together. somebody is going to have to break some of those promises. three days to go and still too close to call. and the race to number ten, wilfred frost thank you for bringing us the latest. very interesting move. wilfred, thank you so much. joining us now to discuss the u.k. election and what to expect. david, pleasure to have you on. whatever choice the country makes on thursday we are unlikely to feel the effects of a single party's plan to steer the economy. would you agree? >> not necessarily, no. at the moment the most likely scenario is we get a minority tory government. whether we get a coalition is
unclear. if you look at the example of the last century, 20 governments in the u.k. five of those were minorities. five coalitions so we could be going back to where we were at the beginning of the 20th century. where you've got these minorities. and. what what type of coalition government could we expect? >> not a coalition. a minority. basically the tories have more seats than any other party. they don't form a coalition with the lib-dems. they just run it. minority governments are just as much a problem for the opposition parties as they are for the actual governments of the day. and the opposition parties have to think very carefully about voting down the government in the minority scenario. i think that's what cameron may well do. >> that's something that history has talking us as well. head to cnbc .com for more
coverage of the u.k. election including your special report from one of key constituencies that will be hotly contested. let's head to greece. the country intends to reach debt payments. speaking to tv says the imf is pressing athens on labor reforms. negotiations were going well and an agreement could be closer this month, but david, of course, we've seen this story before. >> yes. the actual deadline in reality is probably the 20th of july. that's when the greeks have to pay back 3.5 billion euros to the ecb, if they don't do that it become more problematic. the ecb can actually provide emergency liquidity going forwards. that may be the actual deadline the 20th of july. in terms of whether they pay the
imf or not, that may be not be sort of an issue. the 20th of july deadline i think is quite key. if they don't pay that can the ecb continue to provide financing to the banks. if they cut off the banks, then obviously greece goes into a tailspin, basically. >> you know in looking at the greek bond market you could perhaps take away from looking at yields coming down that investors are less fearful of a potential grexit or a greek default. we're looking at the deal approach that 10% level which many say are psychologically important. how closely are you watching this? >> we watch it closely. at the end of the day, you know investors at the moment are not putting sort of a high probability on greece actually exiting. a technical default inside the system is obviously higher. the general assumption is that greece remains inside the euro
zone. the more interesting issue for investors has been the backup of german bund yields and the massive amount of supply we see coming through. particularly in these peripheral countries. greece matters. the more interesting dynamic is bund yields have been backed up somewhat over recent days. >> is that the start of a bear market in bonds or short-term correction? >> probably more of a short-term correction. the ecb doesn't worry about the german bund yields. there's an assumption if you get it minus to it poses huge problems for german life insurance companies and pension funds which obviously have a mix of liabilities on their balance sheet. from the regulators point of view actually a slightly higher bund yield is better news.
they prefer that than obviously bund yields cracking down to minus. sps -- .2. >> definitely welcome for those looking for income at this point. thank you so much david owen. and still to come on the show brent crude edges higher shrugging off higher losses. is it a rebound? we'll discuss that. stick with us.
china's new normal, factory activity slumps to the lowest level. european markets in the green with the london market closed for a holiday, this as german pmi slows in april with the final euro zone coming in slightly better. syngenta a deal could create the world's largest agrochemical firm. david cameron's coalition plan b. prepares for a possible post election deal with the lib-dems.
welcome everyone to the show. if you are just tuning in. take a look at how markets are faring here at 9:30 a.m. in london: the ibex seeing a gain around 3 -- .3 of a%. german pmi slowed in the month of april. it did beat expectation. it came in at 52.8. cac 40 the french markets seeing a third of a percent gain. italian manufacturing hitting a 12-month high. what about bonds? . the sell-off in bonds is really a story. we saw a sell-off in utility stocks on friday. will that continue to hurt sectors like utility and energy sectors as well. take a look at currency it
has to do the encouraging data out of the euro zone if that continues and reaction to quantitative easing. a big part of the european recovery has been the euro driving export growth. oil prices did come under some pressure following weak chinese pmi data raising concerns about the world's second largest economy. brent crude, above $66 a share. up about .5%. wti crude, a barrel up at 59.34, up $3. brent crude is a rally. will it continue? let's discuss with eugene. what do you think? will the oil price continue to move to the up side?
>> yeah considering the recent very strong positive dynamics behind the prices i wouldn't be ruling it out, but i think it's more the costs which is driving the prices than the real effects. i wouldn't be surprised to see a short-term correction. all the fundamental data record exports from iraq and also relatively low call for opec we're below 30 million barrels, still points to considerable need for over supply for the market before the market can be sustainably pointed for any rally. any rally is premature. and would be looking for problems below the term. you are quite the bear here.
how important is it for wti to trade above $60 a barrel? which has really acted as a resistance level for oil. >> that's what i'm talking about. at the moment the market is more thinking in terms of the prices than concentrating on fundamentals. definitely if the price do rise, if the wti prices do arise above $60 it might look in more additional interest into the market. what i'm saying is that fundamental situation, it's quite bleak at the moment and not much hope for the forthcoming opec meeting in one month's time and also the possibility of iran's comeback in the second half of the year should be weighing on the price. but as you rightly pointed, should the prices right in the
short term they can continue rising just because of the strong price than imex itself. how low do they go from here if you are expecting prices to dip further? >> it's very difficult to say as well as to say how much further this rally might go. i won be surprised to see the prices going currently $59 even to below $50 should this rally stall and should we come to this correction because i said the fundamentals are quite bleak, should iran and libya come back to the market then we'll have a two-year supply on the market even without opec itself reducing or increasing its production. so i think that the situation is justified at the moment much lower prices than the market hopes. >> although oent oil rig data
suggests a slowdown in activity. i want to focus to gold. the lack luster performance in gold is making many ask why you are not-- that's not happening. why do you think that is it? >> that's not happening. quite to the contrary the recent fall-out in the bunds and a rise in interest trades put gold prices under further considerable pressure not only in dollar terms but also in euro terms and in euro terms we're hovering at two-year highs. only recently. looking at the price of $1,200 it would be very important for the gold prices to rise consistently and sustainably above this level before any
further gains. otherwise, i wouldn't be surprised that we will see probably more of the weakness. also considerable -- considering their outlook for high interest trades in a short term. >> there's one thing for sure russia continues to buy the shiny yellow metal. it's actually tripled its holdings since 2005. >> central banks worldwide are on a buying spree. i wouldn't be surprised to see in a couple of years probably also the confirmation from the people's bank of china that they also bought a considerable amount of gold. it's one supporting factor and we think it will be supporting the prices at around $1,200 but there is also a need for the considerable investment from the private investors and this is at the moment is lack luster also looking at the increase in
interest trades on one side on the other hand equity markets world wide is also increasing so there is no need for gold as a safe haven as of yet, and also no need for gold as an inflation hedge. we do see the higher prices although the short term prospects are very unclear. >> thank you so much for your time eugene. moving on the french president is traveling today to dohar and qatar. we're live in paris with more on that story. the stock moving higher today. >> absolutely. after 25 years, failing to sell its combat jet, france got three international contracts in three months first one is egypt in february, india in april and the last one, qatar was announced
last week. he's going to travel today to sign this contract for 24 rafale jet fighters. it's worth 6.3 billion euros. it could be followed by more contracts later this year. it's confident that more contracts could be announced later this year. the company in talks with united arab emirates which could buy 16 jets and malaysia could buy 16 jets. the one of the reasons they were able to sell it is the euro dollar versus the dollar which makes the french more competitive. swiss ago gri business syngenta could be taken over by monsanto.
earnings results tomorrow will indicate a strong first quarter. adisdad -- adid das, they would not sell their rebok brand. >> we see adidas trading today. the ceo is likening himself to an athlete who is not fit, referring to last year's multiple profit warning, but this time he makes clear is over. now, adedas is back in full swing and that's what those numbers will likely show. their shares are already up a lot more than the general market year-to-date in anticipation of the expected turn around of the company. looking at the one-year share
performance, that is actually quite disappointing, reflecting those profit warnings last year. what mr. hiner in the interview yesterday was saying as well is that they are staying or they want to keep the rebok and also tailor made golf brand in the company, because the fitness trend is here to stay and now these businesses are making money. there's no reason to sell them. so watch out for the earnings tomorrow. net income is expected to rise with a whopping 14%. >> a lot of focus on adidas. thank you so much. saluting the new arrival. there will be gun salutes in hide -- hyde park and the tower of london in honor of the new baby today. the unnamed princess fourth in line to the throne was delivered
on saturday in london weighing 8 pounds, 3 ounces. the betting is on what the name of the baby will be. my bet is alice. could the royal brand be a stimulus for the u.k. economy? still to come a royal reshuffle of a different kind. saudi arabia announces a new heir to the throne. find out what all this means to the country in your portfolio coming up. the pursuit of healthier. it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others. healthier takes somebody who can power modern health care...
a libyan investment fund is betting on the countries regeneration by completing deal to buy one of the region's largest private sector employers. the founder is a son of a exiled former prime minister. they were forced to leave the country when colonel ga daf if i came into power in 1959. >> i think the most important thing is that when libyans themselves begin to invest back
in the country, that must be a good thing. the timing of that i really don't know. i think there are tremendous opportunities in libya. libya was a country which was the most interesting country before when -- before gadaffi came in. in 1969 we produced more oil than saudi arabia basically we didn't invest. we didn't do anything. saudi arabia invested developed. they grew their oil production to 12 million barrels. libya went to under 2 million barrels. why? we didn't invest. we didn't do anything. if we get a government back in place, law and order, stability back in people will come back in and invest. libians first and then foreigners will come in. opportunities are huge. it's a question of time and being patient and having a long-term view. when we talk about the security situation, this is unlike what we see in syria,
what we see in iraq isn't it? it's not an ethnic issue. it's more about militias, region regional power struggles. >> they are a very small population. the population is all sunni, we're all the same. we don't have sectarian issues. we don't have a state. we're building a state. over the last 42 years, gadaffi and his people dismantled the whole state. what we're doing is building a state. all of these things are in process. they will be done. there's no question about it. once those things are done then libya will become a normal country and that's what we're trying to do. >> what's the west role here? because we've seen libya really fall off the map in term of the political discourse, in the u.k.
we're a few days away from the election, nobody wants to talk about it kind of like an elephant in the foreign policy space? what's the west role in libya is going to be? >> libya is unusual. one, i'm not a politician. what's important is this there are two issues in libya which are going to define a role for the west. one is the tremendous immigration problem which is happening, the other one is the terrorism. the borders in libya are opening. lots of people from africa and other places have used libya as a staging area to get on boats and get to europe. that is a problem that is increasing and we need help to that stabilize that. the other problem is lack of a police force we've ended up people like isis using this place as a place to operate from. that is unacceptable and we need help from the west to assist us
to basically stop this. once those two things are taken into perspective, then the west will help us inputting things back. >> when gaddafi fell we saw europe throwing money at this problem. we didn't see anything positive come from that. we see libya in the state it is today. is there a role for the private sector going forward? >> tremendously. libya had a very small private sector. gaddai's system was basically patronage. that has to end. there's very few libyan groups who are basically there providing services. the future of libya is for people like myself and others much more capable than myself who can come back invest set up operations employ people
train people. it's all about investing in the country. it's all about training people. we have tremendous unemployment. we need to put these people back into work as opposed to spending their time being parts of militias. saudi arabia is being accused of using controversial cluster bombs during its campaigns in yemen. u.s.-supplied explosives were band in 2008 by 116 countries. the saudi arabia is opening their stock exchange to foreign investors for the first time ever. the new rules are expected to begin in june. this as the king salman announced a new heir. pleasure to have you on the
show. from speaking to investors, is there a lot of appetite or interest in getting exposure to the saudi stock market? >> tremendous appetite. this is the biggest story for 2015 for emerging markets. it's fantastic market in terms of size. it's more than $570 billion. this is larger than indonesia and russia. so this is what everybody has been waiting. today we will hear from the regulator about the rules and then the market opens up as you said in mid june and foreigners are coming in big institutions are waiting to come in. pension funds, of course once they are included in the msei this is going to be tremendous for the local stock market. >> there are a lot of challenges including the dramatic drop in oil prices and as well as ongoing tensions with yemen and iran. >> true but the market the stock market index is back where oil was when it was at 95 brent,
dollars brent. so i think the measuring has taken a view that things are not looking that bad. it seems that oil is going to keep going up especially in 2016. we've seen a repricing in the market and they are taking positions as the market is going to be opening up both local and international investors. >> in general, there are some questions as to what's behind this big royal palace reshuffle. what do you think is the underlying reason for this? >> the underlying reason is they want to recreate the way the government is run and they want to bring in young people. the average age has changed of the three leaders from what it used to be with king abdullah at 86 years of age to now 57 years of age. prince mohammed bin nayef is a fantastic person who wants to
bring change to this country with his father. you need to bring the young people because 60% of the population is below the age of 30. you need to empower these people to change the institution. these are historic monumental changes and more is yet to come. >> these changes come at a tense time in the country which is dealing with fighting in yemen, ongoing conflict with iran. can we trust that these albeit younger royals will be ache to make the right decisions regarding foreign policy? >> absolutely. because as you've seen they appointed as foreign minister a very well-known person very well-informed diplomat. the ambassador in washington. he's very well placed to inform and to negotiate between the royals and the others in sawedi and between sawedi and the rest of the world. i think what is happening is
that the country wanted this change and now it's happening. these institutional stages it's reporting to itself no longer to the ministry of petroleum, these are changes that are waiting to happen. you need to have a 21st century economy with the right institutions to diversify away from oil. >> historically the eldest son gets picked for the job. neither are the eldest son. does that tell us that these individuals are being chosen based on skill and merit versus just age? >> what is important here is that the second generation is included and everybody was waiting for the second generation, meaning the grandsons, meaning the nephews, and so this is happening now, and what we're going to see is more of these people being part
of this system. it's important because you cannot run a country with 70 and 80 years old forever. so i think they made a monumental change to go to the second generation which everybody was criticizing saudi arabia from the outside and now it has happened. >> absolutely. it's a tremendous interesting situation and new developments that investors are trying to digest. a pleasure to have you on the show to discuss saudi arabia and this cabinet reshuffle. still to come on "worldwide exchange" a bill -- billionaire investor discusses stocks. we'll leave you with a live look of new york city.
. welcome, everyone to the second hour of "worldwide exchange" on this monday. i'm seema mody and here are your headlines from around the world. warren buffet warns equity markets are mispriced once rates go up. the billionaire investors telling us that he's bought more ibm shares. >> i think we have 78 or 79 million shares now. why did you buy? >> i bought it because i thought we were getting our money's worth. >> a warning call from carl icahn. he says he's preparing for a
correction, but junk bonds are more dangerous than the stock market. mcdonald's serves up a new strategy. coo easter brooke prepares to outline his turn around plan for the world's biggestburger chain. david goldberg the husband of sheryl sandberg dies on vacation at the age of 47. welcome, everyone to the show. the second trading day of the month here on may. take a look at u.s. futures. right now we are pointing to a positive open. we did see a rebound on friday. investors at this point not selling in may and going away. although we did see a lot of volatility in the month of april ahead of that potential rate rise coming from the federal reserve. the dow jones indicating a higher open at 49 points.
apple shares have been under a lot of pressure ever since reporting earnings. it's down about 5% from its recent highs. european markets digesting the latest manufacturing data. they did have a rough session in the month of april. so far the german dax up 17.6% year-to-date. the cac 40 up 18% in 2015 despite the sell-off that we saw in the month of april. what about bonds? let me tell you something about bonds. treasury prices have been falling for the last five trading days the longest losing streak since february 10th. is this the start of a bear market in bonds or just a short-term correction? that, of course has been big question. it's something that we'll be asking our expert on u.s. equities coming up on this show. right now, we're looking at the u.s. ten-year that yield above 2%. that's one of the reasons we saw a lot of dividend paying sectors move lower in friday's trade.
the ten year german bund same story. we've been seeing a big rally in bonds the past wum of months. europe yielding right now 0.83%. the quick look at the ten year at .1.8%. encouraging data out of euro zone. some of that pmi data manufacturing seeing a bit of growth, especially when you look at markets like spain and italy although german manufacturing did come in slightly slower for the month of april. right now, we are looking at the euro lower against the u.s. dollar at 111 for down of .4%. i want to tell you about the brent hitting a 15-year high. gaining 27% in the month of
april. above $66 a barrel. a half a percent gain to the up side. of course that oil rig count that we got suggesting we are seeing a bottoming in the oil market, it will be interesting to see if this trade continues in the month of may. another big part of the story has been the moves out of asia giving that disappointing manufacturing data out of china. let's see how markets fared in today's session. >> we saw the disappointment that you referred to associated with the latest reads on the hsbc market pmi number and it was the biggest contraction for about a year and once again you saw this classic response in the mainland china equity markets of bad economic data being interpreted as good news because it front runs the idea of more stimulus on the way. economists believe that we could see a 25-basis point rate cut in china sometime during the second quarter, so that's the reaction that's the interpretation of the
reaction of the data in the markets. elsewhere, we are seeing rebounds the jakarta composite, philippine under performing because of earnings disappointments. a bounce back now. is it sustainable? there are questionable pace of reform. it's going to be quite busy from the local data central is it bank point of view. gdp coming out of indonesia tomorrow and we have the preserve bank of australia and malaysia meeting this week. a lot to look forward to. thank you so much. warren buffet has admitted he got it wrong when it comes to the impact of low interest rates. speaking of berkshire hathaway's annual meeting in omaha, he was surprised that zero rates had not created inflation. he added smarycts would be overpriced if interest rates
right. he purchased more ibm shares. >> think 13 f is doing a weaker. >> can you tell me how many shares you bought? >> this is really off the top of my head. but i'm sure we bought 3 million or something like that. i think we have 78 or 79 million shares now. >> why did you buy in the quarter? >> i bought it because i thought we were getting our money's worth. >> can you tell us what you are doing now? >> i can't tell you what i'm doing now. >> one of the big questions that came up at the shareholders meeting was something that was first printed in the seattle times about clayton holmes and accusations of predatory lending there. what is your response? >> very simple fact. i mean every person that buys a home from clayton gets a one-page sheet of paper which i showed a copy of and it says check all of thee lenders and name who you want your application to go to and there's usually -- there might be four
or five names there. they are local banks. we're not force loans on anybody. if they had a loan with us they didn't like they could pay us off and borrow from somebody else. we have 300,000 loans on the books and in the last three years i've not received one letter of complaint from anybody. >> that story has gone viral since it was first printed. why have you not responded before today? >> well, i thought today would be a good chance to explain it in some depth. it's very hard to do in one-sentence replies. the fellow today confused gross profit and net profit that's the difference between 20% or 3%. he either didn't understand it or he intentionally did it. he had a number of things wrong. some of the people he quoted he worked to modify loans with them because of privacy rules we can't name the cases. >> will there be additional responses? are you still going to reach out to the newspaper again? >> no i don't think so. >> i didn't see this but i heard the "seattle times" one of the reporters was here today and
approached you on the floor. did you know if that happened? >> some guy did approach. >> what was your response? >> i told him to listen in to what i had to say at the meeting. >> warren buffet will join becky quick live from omaha. they will also be joined by his longtime business partner charlie munger at 8 a.m. eastern. bill gates will also be on "squawk box" at 8:20 a.m. eastern. carl icahn is worried about the u.s. stock market but he believes junk bonds are even more dangerous. he says money keeps pouring into high yield bond funds ooven though that market is ridiculously high. he says when those yields start coming down there will be a great run to the exits. icahn also says apple a rare success story that only comes along every 50 years. he's still pushing the company
for more buybacks surprise, surprise. let's bring in ken cayman to discuss today's and this week's trading action. i want to start with warren buffet's remarks. have negative bond markets force investors to seek returns? >> there is no doubt about that. people are so far pushed out on the risk scale and uncomfortably so. everyone is looking for yield. in a lot of ways savers have been punished. these low interest rate environments have broken the covenant with our older savers who save their whole life. put your safe money in fixed income instruments, they get nothing on it. which interest rates start to go up we're going to see those come down. i've been talking a lot of the
risks people have been taking in search of yields. i'm starting to believe that that's turning to be one of the more risky spots in their portfolio. >> it was carl icahn who made those comments not warren buffett. give us your thoughts on the u.s. bond market. if we continue to see a sell-off in the treasury market would you sell dividend sectors like utilities? >> no, i wouldn't actually. i think when rates normalize, whatever normalize means in the new normal i think dividend stocks are still going to be very attractive. they give you inflation protection and history shows that they might get a bump down as interest rates as the fed might move up but six months out, they normalize and do very very well. i wouldn't be afraid of them. i think it's very important that investors keep in mind that we're going to start seeing the
market broaden out here. everyone has been on this fed watch fear that they are going to spoil the party as soon as they raise interest rates. have to realize we need to get to some sort of normalized rates but that's going to be a signal that the economy is getting strong enough to do it that they finally feel comfortable doing that which speaks i think very well for equities and dividend stocks you know especially the high dividend aristocrats, they have great, great balance sheets and in a time where we might see some inflation at some point kicking up not a risk at the moment or certainly in the short term but you still get some inflation protection. the theory being the company that sells hamburger could raise the price of the hamburger to keep up the bond market you'll get your maturity value back. >> it's also a defensive play on the market. i want to get your thoughts on the recent bout of economic
data. on friday, it showed that activity in the sector grew slightly in the month of april. it came in below expectations. is this gloomy economic scenario of low growth low inflation a reason to buy or sell stocks here? >> i wouldn't be afraid of equities here. i think that you need to be broadening out your allocation. if everyone has been calling s&p 500 proxy if you will which is commanding so much of dollars, 27% of all the money in u.s. etfs are in u.s. ibf funds, three of them to be specific you start realizing a lot of market is concentrated in a very short narrow band. when i look at some of the numbers you've been talking about, manufacturing and employment, we're going to see that choppiness as the numbers start making indications that maybe the economy is heading into a different phase but i think investors really need to start broad broadening out and looking at their asset al
locations. the stock pickers market, i think we're in a sector picking market now. you need to make sure you have some small cap exposure. we see china, rumors that maybe they are going to or murmurs that they are going to potentially, you know doing some easing. so i think that -- i'm no too concerned about the economic data now because none of it seems overheated or under baked. >> got it. lynn the shanghai composite up 100% over the past 12 months it's been quite the rally when looking at china. we're going to leave it there. thanks for joining us this morning. let's take a look it the other top stories that you have to have on your radar before you leave for work. mcdonald's will outline the company's latest turn around plan at 8:00 a.m. eastern. this comes two months after ceo steve easter brooke was brought in to jump start the world's biggest burger chain which has
struggle the last two years. analysts expect him to announce more cut costs and steps to simplify the menu. 20 hold ratings are holding on to the stock. charter communications have reached out to time warner cable management to a friendly merger. john malone spoke with time warner cable's ceo recently. charter and time warner cable, take a look at how they are trading in frankfurt. adedas seems to have its sneakers on. speaking to a german newspaper, herbert haner added it would not
sell its rebok brand. >> reporter: if you look at what analysts are expecting, it's quite a stellar first quarter. the mean analyst expectation for a net profit in the first quarter are actually up 14% to 232 million euros and also sales are expected to rise by roughly 11%. so what has happened last year the company had a series of profit warnings. there were calls for the ceo to resign but now they have stepped out in that interview saying that he actually sort of was responded to the criticism like an athlete who is not fit, going back to the boot camp and now coming back with a company who is actually fit for purpose. he's also reiterating that they don't have any plans to sell the rebok brand as it is now
actually performing very well. they have been through that whole restructuring process and there's no reason to sell rebok whatsoever. watch out for great numbers from add did i das. >> for now, thank you so much. coming up on "worldwide exchange," the indonesian finance minister says the u.s. is uneasy with the aib. we'll be live with more on that star coming up. take a look at futures. indicating a higher open the dow up 30% and nas character also showing a bit of green.
beijing today. taiwan repeated its bid to rejoin the china aaib. china has bounding its-- has blocked its attempts. the asian bank says it's willing to work its new infrastructure as it meets in azerbaijan. how important is this annual meeting? jt an interesting start up to this annual meeting at the asian development bank here inbacku, azerbaijan. it started off with a friendly note with a shaking of hands. they are going to talk about co-financing projects in the future, maybe co-lending to those in need. this is quite surprising given that a lot of people thought that it's more of an
infrastructure bank. this is started up by china, china didn't have enough sway when it comes to the adb, the aiib the adb is still bigger than china's aiib. now, one recipient nation says whether it's adb money or aiib money, they will take both and they don't know what all this controversy is b. >> i think it's just it's more politics other than the substantial issue. i think maybe u.s. feels uneasy with the rise of china's so-called emerging power in asia and also china with other countries, i think the idea of having another new institution which is aiib might raise a
question as to why china is so aggressive in setting up new institution. >> we had 3,000 takenees. we'll bring in more interviews in the next few days. back to you. >> thank you so much. and still to come on the show something new in the u.k. election campaign at the week. an eight-foot tall block of stone. find out why they have been carving out political promises. coming up after this break. [ male announcer ] whether it takes 200,000 parts ♪ ♪ 800,000 hours of supercomputing time 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ ♪
just three days until the u.k. general election and the polls are still too close to call with no party heading for an outright win. willf is in brie ton. >> as you say, still too close to call and that means over the weekend all the headlines once again on the likely coalition possibilities. labor plus the smp perhaps, the liberal democrats, which way will they go and perhaps even a tory pact with uked. i asked him about the possibly of making a deal with mr. cameron. >> mr. cameron's record on this
is interesting. in 2008 he gave a cast-iron guarantee of a referendum. he then changed his mind in 2010. he spent 2011 and 2012 saying a referendum would be against the national interest. and in 2013 he decided to have a referendum. the problem is that he's kicked into the long grass for a couple of years. there is no serious renegotiation, but also he's already said that whatever the outcome of the talks he's going to back the yes side and expect collective cabinet responsibility and my fear is that left on his own, we won get a referendum. we get a stitch-up and so what we need are enough ukep's in parliament to make sure it's a full free and fair referendum. they will try to put the focus back on the policies and
the nhs in particular. he will campaigning here alongside the famous chef deal i can't smith. we will be able to get enough seats not to need a majority, that is unlikely. three days to go. ed milliband and david cameron both in grasping distance. from one election to another, the former hp ceo carly fiorina is expected to declare she's running for the white house. plus a look at u.s. futures on monday morning. good times continue. back in two minutes.
you are watching "worldwide exchange." i'm seema mody. here are your headlines around the world. warren buffett warns equity markets are mispriced once markets go up. he's buying ibm shares. >> i think we have 78 or 79 million shares now. >> why did you buy in the quarter? >> i bought it because i thought we were getting our money's worth. a warning from carl icahn.
he says he's preparing for a correction. but junk bonds are more dangerous than the stock market. mcdonald's serves up a new strategy. ceo steve easterbrooke prepares to outline his plan for the world's biggest chain. the technology community warns david goldberg. he dies on vacation at the age of 47. if you are just tuning in thank so much for joining us here on "worldwide exchange." let's take a look at u.s. futures after that rebound on wall street on friday. futures right now indicating an higher open. we're up around 46 points in premarket trade when looking at the dow. investors say data may cast a cloud over second quarter recovery. that april jobs report will be the big convenient of the week. the u.k. election and ongoing talks between greece and its creditors could also move markets. take a look at european markets.
a bank called in the u.k. which means markets are closed here but the rest of europe is open for business. markets responding variably to that mixed manufacturing data. a slowdown in germany but encouraging data when looking at spain and italy. the dax up triple digits now. we are in rally mode here. sell off in april, at 11 rk 584. a gain of better than 1%. markets responding positively in china. investors are betting on further monetary easing. we should point out manufacturing activity in india also slowed in april. you can see also the seeing a gain of about 1.3%. more the race for white house. carly fiorna is expected to announce today. >> former arkansas governor mike
huckabee is expected to launch his campaign on tuesday. top republican leaders are calling for president obama to rally support among democrats for a crucial trade deal the tpp. the senate is expected to vote this week on a measure granting fast track authority to wrap up the trade agreement which covers 40% of the local economy, global economy. joining us now to discuss is boris epstein and ben white. gentlemen, thank so much for joining us. boris i'm going to kick it off with you. a flurry of announcements are expected this week. carly fiorona. >> carly fiorina is a leader in the business world. they was ceo of hue let packard. she was a constant surrogate and
a big presence at the dpan campaign. she's a very interesting option for republicans who is not a lifetime politician. ben carson also not a lifetime politician. has less political and bids experience. he's a doctor and surgeon. he has quite interesting views. ms. fiorino does have a real opportunity to challenge. >> the fourth candidate in the news is of course chris christie reports he's already been raising money before announcing his candidacy, do you think he's bl bible ato get the overall support from the republican party. >> he's going to have a hard time coming back from some of the hits he's taken over the bridgegate scandal. he did not come out with any charges against him personally. he's not the favored candidate of the republican establishment right now. that's the lane he wants to run in. it's crowded right now.
the christie camp says it's early. wait and see. he's going to announce. he will have financial support in new jersey, although jeb bush is making a push for that. christie is on fumes at this time. i don't see it happening. >> looking at the democratic side, who else can we expect to face in the primaries? >> martin o'malley the former governor of maryland is expected to announce this week and we should say that hillary clinton has no serious challenger on the democratic side and is not likely to have one unless she stumbles really badly or something else in the clinton fundraising process. martin o'malley will challenge her. he will talk a lot about trade, economic inequality and some other issues. you might see jim webb on stage
with her in the early caucus states. the nomination is hers. she's not going to be pushed that far to the left because she is so dominant right now. >> your thoughts? >> the biggest challenge for hillary clinton is hillary clinton herself. there's an article that's coming out in the post that talks about the lack of trust in her. not only by republicans, but by independents and by democrats alike. you are looking at the all the scandals that have gone from the clintons from day one, from bill clinton being elected to the white house, white water, travelgate monica lewinsky. hillary clinton has failed over her long long career in politics to establish that level of trust in her from the voters and again including from the democrats themselves four out of ten democrats say that honest is something that barely if at all applies to the clintons. she is her own biggest problem. is there a real challenge era
among democrats? likely not. even though i would agree that martin o'malley is someone to keep an eye on. if i were a democrat strategist i would try to find a real candidate, someone who can oppose hillary clinton and prepare her for the general election. if she goes through the primary untouched, she will get absolutely hammered in the national elks, no matter who the candidate is. as far as republicans go i think chris christie does have a chance. it's a crowded field. most of the known candidates will have an opportunity to lead the field and if they galvanize enough folks, they can come on on top of that. >> can hillary put the past behind her? >> yeah i this she can. it's important to note that given what boris said that there are certainly negatives surrounding her. if you look at any of the early polls and granted they are early, but she leads every
potential republican challenger. she has obviously a heavy following among democrats. she will have a very big gender gap among women who are very eager to see the first woman elected president. that's not a small thing. that's a big deal for her. she can absolutely overcome the negatives, they are significant negatives. boris is right, is that a significant challenge to tuven her up to get her stronger in debates, to hone in on the issues that connect the with the issues would be beneficial for her. she will go into the general election as the favored candidate over any republican given the early numbers and given the fact that she is so well-known. it would be an historic candidate and generally has, you know decent favorable -- unfavorable ratings. she has this baggage. it will be tough. she's the favorite. >> we're 18 months away from the u.s. presidential election. we're four days away from the u.k. prime minister general election this week and there's been a lot of commentary how the
u.k. politics are getting americanized. using tv debates and two of obama's aides are on opposite sides of the u.k. election. how close are you watching the elect over here? >> i'm watching it very closely and partially hoping you all wind up as dysfunctional as we are. any of the outcomes and there are obviously multiple potential outcomes are impactful of the united states. the possibility of a brexit vote on the eu. administration. the obama administration doesn't want to see that happen. doesn't want to see scottish independence happen. there's a question of the draw down of the nuclear arsenal in the u.k. which has been on the table for labor and they were to win and try to form a coalition, that part of the package is very worrying to the obama administration, particularly with a rising russia. vladimir putin, you don't want to show that kind of weakness. both in the political world,
we're watching it as an incredibly fascinating race with multiple possible outcomes in these coalition forming moments and watching it carefully for the geopolitical destabilization. it's a huge topic in the u.s. >> good to know. both mill i ban and cameron approximate pulling neck to neck with several million undecided voters. ben white, boris epstein, thanks for joining us. let's take a look at other top stories at this hour. floyd mayweather may have gone the distance against manny packqua, he wasn't only the one heading into the fights. thousands of people got to view parts of the pay per view event for free. superheroes reigned supreme in the box office this weekend.
the age of ultron took in $187.7 million in america. that's the second biggest open ever. a lot of moolah. charter communications is trying to lay the groundwork for a possible friendly take over bid for time warner cable. we look at the prospects for a deal after this break. there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too.
could there be a fresh flavor at mcdonald's? ceo steve easterbrooke will outline the company's latest plan today at 8 a.m. eastern. the world's biggest burger chain has struggled with declining sales. there's more cost cuts sales of restaurants to franchisees. of the 35 analysts who cover mcdonald's, 20 have a hold rating on the stock. one is at a sale mcdonald's shares. mcdonald's may have given the world an iconic taste of american fast food but visitors to the expo in milan are experiencing another side of american cuisine. we have the details. >> think of american food and this is may come to mind. not necessarily the healthiest of options, but the american pavilion at the world expo in
milan is hoping to change that. they have branded themselves american food 2.0. >> what we talk a lot about is artisan food that takes place in every place of the united states whether it be braeds beers or cheeses or meats. artisan foods have become an important part of that. american palate is much more complex and beautiful than fast food. >> according to the latestest statistics more than 2/3 of adult americans are considered to be overweight. but pavilions like these are hoping to at least change that image. >> the u.s. pavilion is hoping to show that the pat lat -- palate of americans is getting healthier and more sustainable. >> we're going to continually reinvent. it's going to happen virtual everywhere in the world. people are going to get much more sensitive what they should grow where they should grow it
and distribute it. >> this was the pavilions food offering. for sale were potato chips, barbecue. >> it's good sometimes. maybe once a month. twice a month. it's good. >> i want to eat good sometimes you need to eat a little fattier with some sauces. >> the u.s. stand was also located near a mcdonald's outlet, an official sponsor of the world expo. the u.s. ambassador putting on a positive spin despite the criticism. >> you know i think there's some issue around that but i think most of the corporate sponsors here when you think about it really have sustainablity initiatives what they are trying to do is do an inestably better job how to produce is preserve and distribute product. we embrace the idea of corporations being here. they are going to help solve
this problems. it's not going to be just government. ngos are going to be aing part of this. we need everybody at the table with that discussion. >> with six months still to go the american pavilion still has time to convince the masses. now, let's switch focus to deal news a week after comcast $45 billion bid to buy time warner collapsed, charter communications are reportedly reaching out to time warner cable about a possible deal. let's get more on that story. landon joining us. >> top executives close to charter communications have reportedly contacted time warner cable's management to discuss a merger of the cable companies. the wall street journal says john malone called time warner cable ceo rob marcus in recent days. it was just last year that time warner cable rejected charters unsolicited bid when it found a
white night in comcast. sources tell us that they are set to meet at the national convention in chicago. the general reports charter is striking a friendly tone this time around. it will have to make a large part of any potential offer in cash to alleviate any concerns about whether charter stock is overvawled. they reported a bigger loss hurt by costs related to the failed deal. time warner cable reported its first growth in video customers in a quarter since 2009. the companies are already in competition for bright house networks, a smaller cable operator with about 2 million customers. last week it was reported that they each held preliminary talks with bright house about a potential deal. they are striking ernlinger deals left and right. companies have pulled $141
billion worth of deals so far this year. that's the most since the firm began tracking data in 1995. six of the ten largest deals were pulled in april, including comcast time warner cable. now some sad news over the week. david goldberg the ceo of online questionnaire provider survey monkey and the husband of facebook coo sheryl sandberg died suddenly friday night. he was 47. the family did not disclose the cause of death. he joins survey monkey from yahoo in 2009. the company was vawled at nearly $2 billion after a round of funding last year. baltimore's mayor lifted the curfew on sunday six days after the funeral of the young man who died in police custody, freddie gray. on friday the city's chief prosecutor filed charges against the six officers involved in gray's arrest and transport.
to respond to consumers changing concerns. berk shirk's first quarter profit rose 10% thank to a forecast in railroad and insurance. now, carl icahn is worried about the u.s. stock market but he believes junk bonds are even more dangerous. appearing sunday on the show wall street week icahn says money keeps pouring into high yield bond funds even though ma market is ridiculously high. let's talk more about today's trading action and the move in bond with ben. thanks for joining us. i want to point your attention to the moves we're seeing in treasury prices. they have been falling for five straight days. the longest losing streak since february 10th. does the fall-off continuous into this week? >> it seems there is continued weakness right now amidst this interest rate increase buffet has been touching on it.
it certainly has been in the news. eyes focus is set right now at this point at least for june it could be pushed off but no we've certainly seen some major movement in the interest rate futures products the bonds, products, the ten-years as well. what's me what's most interesting it the range we've been seeing over the last couple of months now on an inter-day basis. the volatility that's come back in the market the participation, the wide range trades we've seen in the last few months now has become the norm relative to what we have been seeing and had been seeing in years past. there's a lot of interest focus and attention being drawn to those markets and again i think that from what we have been seeing in term of price activity i think there's probably a continuation and some more down side pressure ahead of us. i don't think that anyone at this point is really willing to get in front of that right now considering the trend that we've been seeing and the considering recent movement to the down side again. >> we did see a sell-off in the
utility sector one of those high dividend seconders on friday. i want to draw your attention to the move we're seeing in the brent crude at a 2015 high after gaining 27% in the past five weeks. in terms of the impact on the economy when do you think the deflationary effect of lower oil prices will start to wear off? >> interesting question actually. i don't think that really the deflationary aspects that everybody thought we were going to see actually came to -- came present to the extent that we thought we were going to. i mean there was this kind of relief if you will on behalf of the consumer in terms of at the pump but it was somewhat short lived and gas had already been fairly low as we work our way into this. we never really saw that $35 barrel level, so it never really hit that upper level if you will that we would like to see, that gas prices at the pump never reached below $2. that would have been significant i think. at now, at this point what we're
seeing again as you mentioned is oil prices slowly start to creep their way up. a lot of energy in the markets as you touched on. i think it's direct result to the dollar activity we had been seeing. we had seeing such a strong run-up and toward the end of the last week the dollar lost some strength. the grains have still been under pressure as you mentioned again, the energy markets have been on the move. crude, although it's seeing trade back up $60 level, really nothing of major significance at these levels. we'll have to wait and see. >> thanks so much for joining us. and we have a big day on cnbc warn buffet will join "squawk box" at 6:00 a.m. microsoft co-founder and berkshire will on "squawk box."
. good morning, the oracle of omaha, warren buffet holding court with berkshire hathaway shareholders. now, he's spending the morning with "squawk box." plus a makeover at the golden arches. mcdonald's is set to unveil its turn around plan today. it says here will investors be loving it. will investors decide to give the company that it deserves a break today. i can come up with a couple more. and behind the wheel, an auto industry survey finds american drivers have a new favorite. small suvs and crossovers. monday, may 4th 2015 and
"squawk box" begins right now. ♪ ♪ good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick reporting from omaha today. our special guest this morning is berkshire hathaway chairman and ceo warren buffett. to see he's had a busy weekend would be a huge under statement. we're going to be talking to him about the biggest issues in just a few minutes and in the next half hour, we'll hear from the ceo of the independent investments. all four of those ceos ls making the pilgrim amg here this weekend. charlie munger and